The Indian stock market benchmarks—the Sensex and the Nifty 50 —snapped their eight-day losing streak on Wednesday, October 1, after the Reserve Bank of India (RBI) projected healthy growth-inflation dynamics for the country while keeping the repo rate and policy stance unchanged.
The MPC (Monetary Policy Committee) of the RBI voted unanimously to keep the policy repo rate unchanged at 5.50 per cent and also decided to continue with the neutral stance. It was the second consecutive meeting of status quo on interest rates, which experts believe has set the stage for a rate cut in the next policy meeting in December.
The Sensex ended the day 716 points, or 0.89 per cent, higher at 80,983.31, while the Nifty 50 settled at 24,836.30, up 225 points, or 0.92 per cent.
The BSE Midcap and Smallcap indices also clocked healthy gains of 0.91 per cent and 1.16 per cent, respectively.
An across-the-board buying lifted the overall market capitalisation of BSE-listed firms to over ₹455 lakh crore from ₹451 lakh crore in the previous session, making investors richer by ₹4 lakh crore in a single session.
Indian stock market: 10 key highlights from the day
1. Why did the market rise?
The domestic market rallied after the RBI policy decision, which was largely in line with expectations. RBI Governor Sanjay Malhotra’s dovish tone boosted sentiment.
The upward revision of the GDP growth forecast and the downward revision of the inflation forecast supported market sentiment.
“The Indian equity market posted a broad-based rally today, with the RBI’s policy decision broadly in line with expectations but accompanied by a more constructive tone than in June, which buoyed investor sentiment. Its dovish stance, alongside an upward revision of India’s GDP growth forecast from 6.5 per cent to 6.8 per cent, reinforced confidence,” Vinod Nair, Head of Research, Geojit Investments Limited, noted.
“Additional support came from five targeted measures to ease lending, including relaxed capital market exposure norms and enhanced infrastructure financing. Overall, the rebound reflects improving sentiment and hints at early signs of a potential shift in market direction,” Nair said.
2. Top gainers in the Nifty 50 index today
As many as 37 stocks ended higher in the Nifty index, among which Tata Motors (up 5.56 per cent), Shriram Finance (up 5.16 per cent), and Kotak Mahindra Bank (up 3.76 per cent) ended as the top gainers.
3. Top losers in the Nifty 50 index
Shares of Bajaj Finance (down 1.16 per cent), SBI (down 0.84 per cent), and UltraTech Cement (down 0.79 per cent) ended as the top losers.
4. Sectoral indices today
Barring Nifty PSU Bank (down 0.37 per cent), all sectoral indices ended with gains.
Nifty Media ended with a stellar gain of 4 per cent.
The Nifty Bank and Financial Services indices clocked solid gains of 1.30 per cent and 1.38 per cent, respectively, as a status quo on interest rates alleviated immediate concerns about further pressure on their margins.
Nifty Private Bank index jumped 1.97 per cent, while rate-sensitive sectors such as Nifty Realty (up 1.10 per cent) and Auto (up 0.85 per cent) also ended with healthy gains.
5. Most active stocks in terms of volume
Vodafone Idea (70.61 crore shares), YES Bank (15.71 crore shares), and Sammaan Capital (8.4 crore shares) were the most active stocks in terms of volume on the NSE.
6. 15 stocks jump over 15% on BSE
Dynacons Systems & Solutions, High Energy Batteries India, Rajasthan Gases, SP Capital Financing, and Atlantaa were among the 15 stocks that jumped by more than 15 per cent on the BSE.
7. Advance-decline ratio
Out of 4,291 stocks traded on the BSE, 2,797 advanced, while 1,360 declined. Some 134 stocks remained unchanged.
8. 150 stocks hit 52-week highs
As many as 150 stocks, including RBL Bank, Aditya Birla Capital, Fortis Healthcare, L&T Finance, Muthoot Finance, and Tata Investment Corporation, hit their 52-week highs in intraday trade on the BSE.
9. 120 stocks hit 52-week lows
Tata Consultancy Services (TCS), Praj Industries, and Happiest Minds Technologies were among the 120 stocks that hit their 52-week lows on the BSE.
10. Nifty’s technical outlook
Vatsal Bhuva, a technical analyst at LKP Securities, underscored that the Nifty 50 closed Wednesday’s session with a strong bullish candlestick, reclaiming levels above its 100-day EMA at 24,750, which earlier acted as resistance.
Bhuva further said that the index has also retraced 61% of the Fibonacci move between the September 1 low and September 18 high at 25,453.
“On the derivative front, heavy put writing at 24,700–24,800 suggests a higher base, with maximum OI at 25,000. Overall, sentiment has turned positive, with support at 24,700 and resistance at 25,000–25,100,” said Bhuva.
According to Ajit Mishra, the SVP of research at Religare Broking, investors should avoid reading too much into a single-day rebound and wait for stability above 24,900 to confirm a sustained recovery. Immediate support is now placed in the 24,600–24,700 zone.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
